Thanks to Bill Tomko for passing on this article in today’s Telegraph which provides a pro-business, UK view of the shale energy phenomena. I found this article particularly clarifying of the opportunities that are available to the US because we have the technology and capital to develop this resource without any (yet) federal government opposition.

“The wonders of US shale gas continue to amaze. We receive fresh evidence by the day that swathes of American industry have acquired a massive and lasting advantage in energy costs over global rivals, demolishing assumptions about US economic decline . . . America looks poised to become the world’s biggest [oil] producer in 2014. It will approach the Holy Grail of ‘energy independence’ before the end of the decade,” said the journalist. While at the same time – “Europe is going in the opposite direction, drifting towards energy suicide.”

The story is critical of the UK, Germany and France for their energy policies (closing down coal and nuclear while embracing offshore wind and opposition to shale gas fracking). What is not discussed in detail, however, is the specific effect of cap and trade on European energy policy and the flexibility available to the US and China in not having to comply with those mandates.